panterragold.com/site
PanTerra Gold (ASX: PGI), formally known as EnviroGold, is a near term gold producer at its Las Lagunas project in the Dominican Republic with construction scheduled for completion in December 2011. The project has an expected life of seven years at an annual production rate of 65,000 ounces of gold and 600,000 ounces of silver.
PanTerra Gold is also active in Ecuador with the advanced Azuay Gold Mining project and the San Gerardo Gold Mining prospect. At the Azuay project, construction is targeted to commence in mid 2012.
PanTerra Gold banks A$3.7 million from conversion of options
PanTerra Gold (ASX: PGI) has raised about A$3.7 million from the conversion of 24.5 million of its listed options at $0.15 each.
The company now has about 592 million shares on issue following the expiry of the options on 31 December 2011 and the completion of associated new issues within the next few days.
PanTerra will also issue 33.3 million shares at $0.15 each to underwriters this month to raise $5 million.
Executive chairman Brian Johnson said he was comfortable that a large number of options had not been converted as PanTerra had no immediate need for additional funding, and dilution of around 17% had been avoided.
Well Funded
The funding will boost the company’s September quarter cash in the bank sum of $6.5 million, which is expected to increase even further in the June quarter of this year with cash flow from the Las Lagunas gold tailings project expected to begin in April 2012.
If a gold price of US$1500 per ounce is maintained through to the end of 2013, PanTerra expects to repay its $37.5 million project loan and generate more than $80 million of free cash during the same period. Project life will be approximately seven years.
Commissioning of the Las Lagunas process plant will begin on 15 January and take around 10 weeks to complete before gold and silver production can begin in April.
San Gerardo Concession, Ecuador
Meanwhile, PanTerra recently received the results of an induced polarisation geophysical survey over its San Gerardo Concession in Ecuador which has identified 15 drill targets, three of which represent the best targets for porphyry style mineralisation of the copper-molybdenum-gold soil anomaly recognised by earlier soil sampling.
PanTerra will begin a 25,000 metre drilling program as soon as it has received the Environmental Permit.
Besides drilling, the permit will allow limited forestry clearance, access road construction and expansion of operations of seven small-scale underground mines aimed at producing around 100,000 ounces of gold per year through an offsite processing plant.
